A manufactured home is built entirely in a factory and attached to a permanent chassis. Once construction is complete, it is moved to a lot of the owner’s choosing. The wheels are removed and the chassis is placed on a foundation; pier and beam is most common.
Assembly is completed by attaching the different sections, connecting utilities, adding any exterior elements, touching up the interior, and installing tie-downs.
Manufactured homes were called mobile homes before June 15, 1976, when Department of Housing and Urban Development (HUD) building standards began. The HUD code regulates home design and construction, strength, durability, fire resistance, and energy efficiency.
Standard dimensions make them easier to mass-produce in factories, resulting in quick construction timelines and lower costs.
SPONSORED: Find a Qualified Financial Advisor
1. Finding a qualified financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes.
2. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you're ready to be matched with local advisors that can help you achieve your financial goals get started now.
Are these modular homes? No. Modular homes are also built in factories, but a modular home must meet the same building codes as a site-built home and has a permanent, standard foundation.
Image Credit: laynabowers / iStock.
The Cost of Manufactured Homes by Size
Manufactured homes typically come in three sizes: single-wide, double-wide, and triple-wide. Each section is designed to fit down a highway, with the maximum width set at 16 feet, except in Texas, which adds 2 feet. A single-wide runs 66 to 80 feet long.
Here’s what you can expect to pay for a new manufactured home as of September 2022, according to the U.S. Census Bureau and HUD’s Manufactured Housing Survey:
- Single-wide. New single-wide homes usually range from 400 to 1,200 square feet and have an average price of $95,800.
- Double-wide. Double-wide manufactured homes typically range from 1,000 to 2,000 square feet and average $159,400.
- Triple-wide. With 2,000 to 3,000 square feet, these homes start at $200,000.
Anything smaller than 400 square feet may be considered a tiny house or a park model. Both are often classified as recreational vehicles, not meant for full-time living.
Image Credit: Marje/istockphoto.
Additional Costs to Consider When Building a Manufactured Home
How much a manufactured home costs may look deceptively low. There may be costs beyond the sticker price, especially if you want to place the home on raw land and need a land loan.
In addition to the home, you might have to pay for utility connections, exterior additions, taxes, delivery, and setup.
You’ll also want to pay attention to rates and terms of loans you qualify for. Owning the land, or a plan to do so, almost always opens the door to more attractive financing options.
Image Credit: krblokhin/istockphoto.
With a manufactured home, you have the option of renting or purchasing the lot.
- Rent the lot: Expect a monthly rate of $100 to $1,000. This doesn’t include additional fees from the homeowners association.
- Buy the lot: $0 to $1,000,000. Land costs depend on size and location; if you inherit land, you may have no cost at all. You might buy a small lot in a resident-owned park, but if it’s a co-op, you’re buying a share in the community.
If you’re buying unimproved land, you may also pay for site clearing and prep, a driveway, drainage, and porch, garage, deck, or other exterior additions. These can add quite a bit to the cost to build a manufactured home.
Image Credit: Marje/istockphoto.
If you’re thinking of buying or building a house on raw land, you’ll need a way to connect to utilities. Common costs:
- Water or well: $3,750 to $15,300.
- Electric: $0 to $10,000. Some power companies can hook you up for free, while in other areas the cost can be $10,000 or more.
- Septic: $4,500 to $9,000. Manufactured homes in rural areas will need a septic system if there’s no sewer connection.
Image Credit: tab1962/istockphoto.
Delivery and Setup
Most manufactured home dealers include the cost of delivery and setup when you purchase a home. Some, though, leave delivery and installation for the customer to arrange and pay for.
At a minimum, setup for a manufactured home may involve:
- Hooking up utilities
- Testing connections
- Touching up interior elements, such as where two sections meet
- Adding skirting
Image Credit: Hispanolistic/istockphoto.
If you want a garage, porch, deck, or other exterior structure, you’ll need to add these costs as well. Prices are national averages, as per online cost guide service provider Fixr.com.
- Porch: $15,000 to $35,000, but can be as low as $5,000 or as high as $50,000.
- Garage: $23,000 to $45,000
- Deck: $9,000 to $20,000
- Landscaping: $8,000 to $15,000
- Driveway: $3,460 to $6,910
Image Credit: felixmizioznikov/istockphoto.
You may need to pay sales tax on a manufactured home purchased from a dealer.
That is in addition to property tax you will need to pay each year if you own the land your manufactured home sits on.
Image Credit: Eleganza/istockphoto.
Should You Build a Manufactured Home?
Proponents of manufactured homes tout their affordability, quality, and quick construction. It’s possible to build a manufactured home that is much less expensive than buying new construction of a traditional home.
The Consumer Financial Protection Bureau points out that whether the homeowner owns the underlying land affects many aspects of the financing “and can have major implications for the homeowner in terms of cost and security of tenure.”
If you plan to lease the land but feel comfortable absorbing any lot rent increases, then a new manufactured home could be a suitable choice. Some communities are downright upscale, offering pools, tennis, pickleball, golf, fitness centers, clubs for every interest, security, and camaraderie.
Do manufactured homes depreciate? Homes that are not high quality or affixed to a permanent foundation often lose value. A depreciating value also means homeowners may not be able to refinance.
But some data shows that well-maintained manufactured homes in attractive locations actually appreciate in value.
You might want to compare the expected total costs of different types of houses — including a townhouse, condo, and detached single-family home — with a used or brand-new manufactured home.
Image Credit: felixmizioznikov/istockphoto.
When financing a manufactured home, you’ll likely run into several options offered at the sales center. Just be aware that mobile home financing may be different from lending for other kinds of homes.
For one, manufactured homes typically have a repayment period of 25 years or less instead of the 30-year loan that you can obtain for a traditional home. This translates into higher monthly payments.
A new manufactured home attached to a foundation on land you own will be treated like a traditional home as far as financing is concerned. Lenders take into consideration how the manufactured home is titled and deeded. If it’s considered personal property, you may need a large personal loan.
A chattel mortgage is another option for personal property.
An FHA Title I loan could be another possibility. These loans are used to purchase a manufactured home, the lot the home will reside on, or both. There are loan limits.
Image Credit: 6okean/istockphoto.
How much does it cost to build a manufactured home? Much less than a traditional home, but be sure you’re looking at all the costs involved. A lot of the total expense of owning a manufactured home will depend on whether or not you own the land.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Liz Young is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Her ADV 2B is available at www.sofi.com/legal/adv.
Image Credit: uptonpark/istockphoto.
More from MediaFeed
How to find the best contractor for your home project
Image Credit: andresr/istockphoto.